The Cost of Living

The development challenge facing Ethiopia is immense. Its people are among the poorest in the world, the economy is growing too slowly and population growth is rapid.

The median wage in Ethiopia is estimated to be around 300 Ethiopian Birr a month (about £8). A healthcare assistant earns around 500 Birr a month, a GP or consultant around 5,000 Birr and a government official many times more. An IT student told me he hopes to earn several thousand Birr a month when he graduates. But only half of the population participate in work. Most working people in cities are self-employed (around 40%). Government employees make up about 18% and private employees around 16%. In urban areas agriculture is the main work activity.

Whilst the price of food in the market sounds cheap in UK terms (onions, potatoes, bananas and oranges are 10-15 Birr per kilo), a wage of 300 Birr will not go far, given the average number of children women in Ethiopia have is over five (the number is lower in Addis). 

 

The gap between those who earn the lowest or nothing at all and those at the top of the wage hierarchy is growing. Walking around Addis this gap is strikingly apparent. In amongst the shiny new tower blocks and upmarket shops and cafés are makeshift huts, street sellers and beggars. Everywhere you turn there is someone asking for food or money. Like many of my volunteer colleagues, my coping strategy is to simply give away all the coins I accumulate each day to the first beggar I see.

As VSO volunteers, we receive a small monthly allowance commensurate with local wages. This is intended to cover our food, electricity, water bills and transport to and from work. Our accommodation is provided by VSO. By shopping at the local market it is possible to live happily on this allowance. For those volunteers who are placed in rural areas there is nothing much for them to spend their money on anyway. In Addis there are several Ferengi supermarkets where we can spurge 400 Birr on a bottle of imported wine or a tiny bit of rubbery cheese. There are also several luxury hotels where we can eat Ferengi food at Western prices. One of my favourite affordable treats is a mixed fruit drink called Sprice which includes mango, banana and advacado (about 12 Birr).